Nokia India has been present in the marketplace since 1995 and it is continuing to grow at a faster tempo especially in the time of 2003 and 2008; the gross annual earnings has increased by 33% during this period which ultimately shows that strategy followed for sub-urban and metropolitan population is a highly effective one. It really is now facing the dilemma of adding Nokia Life Tools services for rural inhabitants; the primary services which will be offered are Education, Entertainment and Agricultural services.
In order to have complete move out in India, the business will have to implement systems that will assist it in offering consistent services to the clients along with up-to-date information so that the users can reap the benefits of such valuable way to obtain the information. The company must develop the system that will ensure every customer in India is serviced properly; it's been successful in get together the requirements of urban human population and it'll definitely catch the rural market show.
Introduction to Nokia and Nokia India
Nokia Firm is a multinational company of telecommunication sector that has its headquarters in Keilaniemi, Espoo which really is a city near Finland. Nokia has been present in the market for nearly ten years and has been expanding outstanding, high quality and progressive mobile devices. The business has even came into into Internet and communication industries; it has its roots in four different segments i. e. Mobile Devices, Enterprise Solutions, Systems and Multimedia. In the event study, it is pointed out that as of 2009, Nokia Company is present in more than one hundred and fifty countries and it is earning global income of EUR 4. 1 billion.
Nokia Corporation is known as to be the leading producer of mobile devices as it has the latest technologies and its workforce comprises of well-qualified and highly trained employees. For each and every major segment and its ethical practices, the company is producing cellular devices which have additional features such as Code Department Multiple Access (CDMA), W-CDMA and Global System for Mobile Marketing communications (GSM). It is also offering various Internet services like music, maps, mass media, applications, game titles and text messages via its Ovi platform. Nokia Firm has joined into various relationship contracts like Nokia Siemens Network that produces equipment, services and solutions for the telecommunication network. Hence, it's the best company in the telecommunication industry that is offering customers by exceeding their goals level (Aspara et al. , 2011).
In India, Nokia Firm started its procedures in 1995 and it enjoyed a ground-breaking role in the mobile technology's robust expansion. Currently, Nokia has its functions in five major towns of India i. e. Mumbai, Bangalore, Ahmadabad, New Delhi and Kolkata. The businesses of the business include the handsets and network infrastructure businesses like Nokia Siemens (both companies merged to talk about the telecom network operations and equipment division) so that it can take benefit of business opportunities on the market. This tactical alliance has helped the firms in becoming the primary supplier to all top placed GSM providers such as BPL, Vodafone, BSNL, Bharti and IDEA.
As mentioned in the event review, Nokia perceives India to be its third largest market in conditions of the sales. In India, it is the leading brand in mobile phones and has top position as compared to other mobile brands in terms of the market share, customer support and promotional activities. Nokia is following a low cost control strategy in India which is visible from its procedure of looking for various ways to cut down the costs (Hamilton-White, 2009) such as setting up a manufacturing unit for the handsets, the development of various options for financing of cellphone and dealing with the mobile providers to reduce the expenses of airtime.
Nokia India is rolling out an excellent distribution network that gets to more than 25, 000 retailers; this size is 3 x more than that of Samsung and six times more than that of Sony Ericsson. Many of these dealers are distributors of Fast Moving Consumer Goods (FMCGs) and consumer durables; they acted as middlemen for mobile phones as they found margins to be very attractive. Hence, Nokia Corporation has been concentrating on every portion in India by pursuing a proper and well-designed strategy. It has launched all highly demanded features and applications and is now aiming to target the rural inhabitants of India by launching the Nokia Life Tools (NLT) program.
The industry examination along with interior and external research of Nokia is mandatory to understand its business environment; the environment where an organisation is operating must be carefully assessed so that the right span of activities can be chosen that will help an organisation to check out right course and achieve its well place goals (Bolton & Saxena-Iyer, 2009; Teece, 2010). It is important for the organisations to properly develop, use, screen and control its strategy such that it can effectively permeate in its market and achieve the required goals (Shalman, 2010).
Telecommunication Industry of India
In the previous few years, the telecommunication industry has grown significantly and a lot of companies have entered the marketplace to catch the attention of various customer segments (Wiley, 2010). It really is mentioned in the event that as of 2008, there have been 129 million users of cell phones; the industry has witnessed 52% growth in the time of 2003 to 2008 and the major progress has been observed in entry-level mobile phones in India. The prices of mobile phones dropped in the same amount of 2003 to 2008; while, the revenue increased by 33%. By 2008-2009, Nokia has been the marketplace innovator in India, accompanied by Samsung, Sony Ericsson, Ray, Zen etc. Many cell phones produced from China are on offer to the price delicate customers of India who want for reasonably priced entry level cell phones.
The telecommunication industry is facing severe competition from various private or non-banded manufacturers of handsets such as Sagern, Huawei and ZTE as they are partnering with the network providers to own cellular devices under their own individual brand. Likewise, the smartphones are easily available in India as the clients are looking frontward for such kind of cellular devices. Nokia led the sales of smartphones as people were unwilling to buy Apple iPhones as they have relatively higher prices; individuals started out buying Nokia touch devices to fulfil their desire of using smartphones. Hence, Nokia is effectively targeting the customers of India by producing a proper strategy that facilitates them in meeting their required needs.
External and Internal Research of Nokia India
In order to ensure that the companies are offering the best product and service offerings, it's important to allow them to conduct both external and internal market examination (Nikols, 2011). The strategy that is developed after considering all critical indicators is the best one (David, 2010); every organisation has to ensure it first conducts market evaluation so that it has complete consciousness about its business environment and the strategy is developed and integrated with excellence (Dess, Lumpkin & Taylor, 2005).
PESTEL Analysis of Nokia India
The PESTEL Research has been made to help the companies in determining the problems that they can have to face in their business environment; many of these external ones and they're beyond the control of an organization (Koh, 2009). After careful research of Nokia India, following factors have been highlighted that need to be looked at by the management team when developing its strategy for Indian market:
The political aspect is conducive for Nokia functions as it has set up its manufacturing facility and there is extreme relaxation in rules and regulations. Nokia Company will have to be sure that this complies with restrictions of the Indian federal such that it is able to conduct honest business tactics.
Nokia Organization has helped in providing a boost to the Indian market as it did a major contribution in its GDP. However, it's been evident from the research of financial reports given in the case that the spending power of customers is lessening, inflation rate is increasing and there are fewer opportunities for growth. Since people have low income, these are reluctant to buy any expensive products and services.
As the customer needs are changing on regular basis, it is important for the organisations to monitor the social styles. For instance, the customers have started using the cell phones both for work and leisure purposes and the telecommunication industry will have to ensure that they provide complete information about their cellular devices so that the customers can make choice according with their inclination level.
The technological breakthroughs happen at an accelerating rate which is very important to companies in the telecommunication industry to remain up to date about the latest technology and incorporate them in their products and services.
All companies in the telecommunication industry have to comply with the environmental constraints which mean that they need to ensure that their operations are conducted in environmental friendly way. The companies need to get engaged in the actions that show that they are environmentally responsible; India has rough environmental guidelines that the firms have to follow to continue their procedures in the united states.
The rules and regulations change on recurrent basis so it is important for each and every company to ensure that they comply with legal requirements of these industry requirements. Although Indian legal requirements aren't too much strict but it's important for the telecommunication companies to ensure conformity with the legal regulations.
SWOT Research of Nokia
The SWOT (Talents, Weaknesses, Opportunities and Dangers) research helps an company to identify the inner and external factors that will aid it in the introduction of an efficient and up-to-date strategy that will include all vital factors critical for creating a distinctive image and position on the market (Morden, 2007).
Strengths
The major advantages of Nokia India are the following:
Nokia has the best circulation network as it is rolling out effective relationships with various distributors and it's been able to reach endless customers with greatest ease.
All the products of Nokia are user-friendly and durable; almost every customer is satisfied with the exceptionally high quality level of the merchandise.
The financial aspect of the company is strong as it has various profitable businesses.
Every staff of the business along with the management team is highly professional and capable who know about all the dynamics of its business environment. Nokia has most significant network of circulation and selling in comparison toother cellular phone company on the globe. It is guaranteed with the highquality and professional team in the HRD Dept. The financial aspect isvery strong in case of Nokia as they have a lot more profitable business. The product being user-friendly and also have all the accessories one wantthat is why is great demand making it No-1 selling cell phones inthe world. Wide range of products for everyone class. The re-sell value of Nokia cell phones are high in comparison to other company's product. Nokia has greatest network of circulation and selling in comparison toother cellular phone company in the world. It is guaranteed with the highquality and professional team in the HRD Dept. The financial aspect isvery strong in case there is Nokia as they have many more profitable business. The product being user-friendly and have all the accessories one wantthat is why is great demand rendering it No-1 selling mobile phones inthe world. Wide range of products for many category. The re-sell value of Nokia telephones are high compared to other company's product. Nokia has most significant network of circulation and selling as compared toother mobile phone company in the world. It is supported with the highquality and professional team in the HRD Dept. The financial aspect isvery strong in case there is Nokia as it offers many more profitable business. The merchandise being user-friendly and also have all the accessories one wantthat is the reason why is in great demand which makes it No-1 selling mobile phones inthe world. Wide range of products for all those school. The re-sell value of Nokia mobile phones are high compared to other company's product. Nokia has largest network of distribution and selling in comparison toother mobile phone company on the globe. It is supported with the highquality and professional team in the HRD Dept. The financial aspect isvery strong in case there is Nokia as it includes a lot more profitable business. The merchandise being user-friendly and have all the accessories one wantthat is the reason why is in great demand rendering it No-1 selling mobile phones inthe world. Wide variety of products for many course. The re-sell value of Nokia phones are high in comparison to other company's product. Nokia has most significant network of syndication and selling in comparison toother cellular phone company on the globe. It is guaranteed with the highquality and professional team in the HRD Dept. The financial aspect isvery strong in case of Nokia as it includes a lot more profitable business. The merchandise being user friendly and also have all the accessories one wantthat is why is in great demand rendering it No-1 selling cell phones inthe world. Wide range of products for everyone school. The re-sell value of Nokia telephones are high in comparison to other company's product. Nokia has major network of distribution and selling in comparison toother mobile phone company on earth. It is supported with the highquality and professional team in the HRD Dept. The financial aspect isvery strong in case of Nokia as they have many more profitable business. The merchandise being user-friendly and also have all the accessories one wantthat is excatly why is within great demand making it No-1 selling mobile phones inthe world. Wide range of products for all class. The re-sell value of Nokia cell phones are high compared to other company's product.
Weaknesses
Some of the weaknesses of Nokia India are as follows:
The variety of service centres in India is very limited and scarce; therefore, after sales service provided by the company directly is limited to certain customers.
The cost range offered by the business is too much; some customers find purchasing the mobile phones of their budget range quite difficult.
Some of the cell phones lack user friendly feature; it is important for the business's development team to ensure that they develop mobile phones relative to the demands of their target customers.
It lacks resources for All India Rollout because of its Nokia Life Tools services.
Opportunities
Nokia India has next opportunities for the extension of its business:
The product and cost range offered to the clients is available in wide variety. The business can develop the merchandise and services for every single customer section and then enter the market relative to demands of the customers.
India economy is growing which is expected that the typical of living gets increased; the telecommunication industry keeps growing at an accelerating time which is the peak time to enter the market.
Nokia India can form its own circulation network and enhance its presence on many other programs and it may also go into the rural market with specific cell phones because of this market.
Threats
The dangers that are most likely to impact Nokia India are as follows:
Many competition are entering the marketplace and there is increasing option of China made mobile phones.
The government restrictions can get strict which can impact the operations of Nokia's manufacturing unit in India.
The growing demand of the smartphones can cause drastic decrease in demand and sales of Nokia's mobile phones.
Nokia Life Tools (NLT)
After a successful pilot test in Maharashtra Status, Nokia is likely to release Nokia Life Tools (NLT) service in India; it is expected that the service will be first launched in Maharashtra along with connection of Maharashtra Status Agricultural Marketing Board (MSAMB). The service has been specifically made for Indian farmers and low income group people so that they can have access immediately to information related to their work. NLT consists of an array of Education, Agricultural and Entertainment services so that it can meet the spaces in information that is present in the market (Koh, 2009).
NLT is offering an array of unique, innovative and up-to-date Education services and Agriculture information that is targeted for the rural customers. Under the NLT services, the customers can choose from various types of information or service that they would like to gather out of this platform. The main services available for the clients are as follows:
NLT Agriculture services - The main purpose is to connect all information spaces and requirements of the farmers through their mobile devices. The customers such as farmers are given the information about fertilizers, seed products, market prices, pesticides and weather.
NLT Education services - The primary aim offers services related to the education and career such as Basic Knowledge, prep of the tests, Examination results, British dialect learning program and information and tips relevant to career.
NLT Entertainment services - This service offers features such as subscription to various options like activities, Astrology, media on current affairs, politics and other related matters, downloadable ringtones and jokes.
NLT services improve the users' experience by using user interface that is dependant on icons and is graphically abundant as well. It includes various features such as Text that can be used for delivering of critical information in various dialects and customers are relieved of any inconveniences regarding additional adjustments like the need for coverage of GPRS.
Challenges encountered by Nokia India
Nokia India is facing following challenges regarding its business functions in India:
The supply string for NLT services is inadequate to help the company in doing All India Rollout as it lacks effective relations for the agricultural services series.
There is a lack of partner that will help it in providing content of most twenty-eight Express education boards; almost all of the partners will offer services for only seven to eight Talk about boards.
In the entertainment services, it is mandatory requirement of implementation of something that can get modified on hourly basis; presently, Nokia India doesn't have the resources for the successful release of this service category.
There is insufficient marketing efforts as Nokia uses small retailers for marketing of its products; the mark market being targeted for NLT services include the rural inhabitants and they would prefer to buy via word-of-mouth marketing rather than traditional mediums of marketing.
Recommendations for successful introduction of NLT
Considering all the factors highlighted in the case, the suggested strategy is the fact Nokia India will have to develop a objective that it would like to accomplish via NLT services; the quest will provide a sense of direction to the business and will also assist in the development of the goals. Once quest is defined, Nokia must enter into collaborative contracts with mobile providers who'll help them in getting their marketplace effectively. In order to provide agricultural and educational information, it has to partner with the primary news firm and research organization who'll provide kept up to date information; the company will have to ensure which it has well-developed system that will ensure that information is easily accessible by the customers and they may use the facts with convenience.
Once the strategy is developed and put in place, Nokia must continuously monitor the effectiveness of strategy by collecting the client feedback and interacting with the customers on an ongoing basis. It will have to ensure that the clients are relieved of these worries and are given complete information related to their needs. Hence, marketing activities for rural market will comprise of one to one marketing via retail outlets and distributors so that they are influenced in purchasing these mobile phones with NLT services.
